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Spanish prosecutors have called for Real Madrid manager Carlo Ancelotti to serve a jail term of four years and nine months, accusing him of evading approximately one million euros (£854,000) in taxes. The charges stem from alleged misconduct concerning image rights revenues during his initial tenure as the club’s manager in the 2014-15 season.
Complex tax evasion allegations
The Madrid Community Prosecutor’s office has leveled accusations against the Italian coach, alleging that he devised a “confusing” and “complex” network of shell companies to conceal additional earnings. According to reports from Reuters and AFP, Ancelotti, now 64 years old, faces charges of two counts of tax fraud.
Despite asserting his status as a tax resident in Spain and claiming Madrid as his primary residence, Ancelotti purportedly only declared personal remuneration directly received from Real Madrid in his tax filings. Additionally, prosecutors claim that he orchestrated the transfer of his image rights to entities with purportedly no genuine activity outside of Spain, thereby avoiding tax obligations.
Legal implications and sporting precedents
If found guilty, Ancelotti could face significant legal repercussions, marking a notable legal battle for one of football’s most esteemed managers. Ancelotti’s legal representative declined to comment on the matter, while Real Madrid has chosen not to issue a statement.
Ancelotti’s case is part of Spain’s broader crackdown on tax evasion within the sports industry. Previous instances include the conviction of Argentine football icon Lionel Messi in 2017 for defrauding Spain of 4.1 million euros (£3.5 million) during his tenure at Barcelona, resulting in a 21-month jail sentence later commuted to a fine. Similarly, Portuguese star Cristiano Ronaldo accepted an €18.8 million (£16.6 million) fine in 2019 for tax evasion charges during his tenure at Real Madrid, though he avoided jail time due to Spanish legal provisions.
Impact on Ancelotti’s storied career
Ancelotti, renowned for his managerial successes across Europe with stints at clubs such as Juventus, Chelsea, AC Milan, Bayern Munich, and Everton, faces the prospect of tarnishing his illustrious career if found guilty. Notably, he remains the only manager to secure league titles in England, Spain, Italy, Germany, and France, as well as winning the UEFA Champions League on four occasions.
As Ancelotti navigates this legal challenge, Real Madrid continues its pursuits across various competitions, including the Champions League. However, the outcome of his legal proceedings could have far-reaching consequences for both the club and the esteemed manager’s future endeavors.
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